5 Ways Owning a Home Builds Wealth

September 03, 2022 4 min read


The Money Bag Newsletter by Financial Footwork


5 Ways Owning a Home Builds Wealth!

Have you ever thought about owning a home, or being a first-time homeowner? Is it a good investment to own a home with all of this modern inflation talk and current market price interest rate hikes? Check out our Free GAME (tips and tricks y’all) below for potential homeowners! 

No place like the MARKETPLACE

As far as the housing market goes, the increase in interest rates hasn't jumped this rapidly since 2008. Recent Federal funds rates are due to inflation, so that does impact the housing market. Although millions of millennials have bought houses, the demand and supply may be imbalanced sooner than later so it’s not a bad idea to consider saving or investing in a home– now. As we know, generating wealth is an investment, and homeownership is one of many great ways to do so.

First, let’s start off by listing some Perks & Benefit$ when becoming a homeowner!

1. Stable payments with long-term predictability of housing costs.

Having a consistent housing payment every month allows for long term planning and stability in your monthly cash flow. Your interest rate and payment are set by your loan terms. There is long-term predictability of your housing costs by have a SET payment. You are also investing in yourself instead of paying a landlord or property manager. i.e. your money is not going down the drain, it is building equity for your future self.

2. Protection against inflation and price hikes

When Inflation goes up, the cost of everything increases-including housing. If you have locked in an interest rate on a home, then you don't have to worry about hidden costs, such as higher rent or increasing home prices. #winning

3. Long-Term Growth

Equity...that thin you can't touch but know is there. Equity is the value your home has after your mortgage loan(s) are deducted. The more equity you have, the more access to cash you have. Building equity is a financial win for your budget, savings account, wealth profile, and long-term retirement plan.

4. Generating Personal Wealth

Stats show homeowners have a much higher net worth than renters. Your home being an asset and something that builds additional value over time. The combination of your asset's growth and paydown the mortgage, generates wealth for the homeowner. 

5. Reduction of your Tax Liability

Mortgage interest deductions, property tax deductions, tax credits (depending on the state you live in), and energy-efficient improvements are just some of the possible tax reduction tools you have at your disposal as a homeowner. Build equity and reduce taxes. Win, win, win!



As you begin saving for a house, research your state's qualifications. Although 20% down may save you money over time, it’s not always a requirement, but it's important to get a realistic expectation of what your down payment could be and see what you could get approved for to see what you can afford. Depending on your state, credit score, and income, you may be able to get loans with far less than 20 percent down. 

Regardless of what you may put down, consistently putting money away will go a long way when wanting to achieve down payment goals. Just take a look at our cheat sheet with our Ultimate Beginner Budget Course guide for epic saving hacks. To have a play-by-play of how to save quickly and correctly.

Here are a few key pointers you will need to put into practice to help you save: 

1. Budgeting

Find out where your money goes every month. Look at where you’re spending the most money, and areas where you can cut back. 

2. Cut Out A Bad Habit (or two)!

Bad habits such as excessive online shopping, impulse buying, dining out, drinking/smoking daily can cost us hundreds of dollars a week, alone. Cutting out one unhealthy habit and pouring it into housing funds instead sounds like a fair trade to me!!

3. Skip A Vacation

Those Cabo trips won't last forever~! We understand the importance of experience with travel, but sitting out on family vacation or a pal’s trip could expedite your house-seeking process much sooner, and pay off tremendously when you see your fruits come to labor in your backyard too!

4. Downsizing

A fast way to save more money for a down payment is by downsizing your means of living so that you can save save save. This can look like selling unused vehicles, moving into a smaller apartment, or moving into a more affordable area for a short period of time. You may even find this process humbling and enjoyable too! 

5. Side Gigs

Yard work, freelance, editing, coaching, or individual talent gigs etc. are great ways to dedicate your time to your own financial housing goals and expenses. 

You must train your financial habits in order to become a home buyer/owner or landlord. Having a support system and playbook creates a guaranteed plan to get you one step closer in achieving your dreams. --> Grab our Financial Playbook & Ultimate Beginner Budget Course today!


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